Tuesday, May 12, 2009

Playboy - Sex No Longer Sells

Playboy Enterprises (PLA) announced some more red ink. New management is in place and cost cutting all around. NYSE is sending letters that their market cap is too small. Advertising revenues are down here as well as with every magazine. Playboy is proving that sex does not sell. Hugh Hefner is still residing in the Playboy Mansion in LA. The real estate seems to have been a good investment. What does Hefner add at this point? The press release’s keep making the point that Playboy is one of the most recognizable consumer brands. Powerful brands make money. This one does not. Watch for a chapter 11 to restructure costs.